nasscom bpm summit 2013 - masterclass i - derek miers

Making Leaders Successful

Every Day

© 2013 Forrester Research, Inc. Reproduction Prohibited 2

Forrester consulting is different

› Research based

• Answering key client questions.

• Meaningful methodologies that impact

speed, reduce costs and risk.

› Analyst led

• Research focused into highly

customized engagements.

• Building actionable outcomes for

clients.

› Independent

• No vendor or technology bias.

› Strategic

• No implementation.

• No down stream aspirations.

• We help our clients make the right

decisions for their business needs.

Research based

Analyst led

Independent

Strategic

Our objective is to grow your

business capabilities

Business first, technology second

BPM Master Class

Derek Miers, Principal Analyst

September 17th, 2013

@bpmfocus

© 2012 Forrester Research, Inc. Reproduction Prohibited

Whatever “it” is that you do …

If it’s good enough today, it’s probably not going to

be good enough tomorrow.

“Nothing fails like

success - because

we don't learn from

it. We learn only

from failure.”

“One cannot teach

a man anything.

One can only

enable him to learn

from within himself.”


Let’s start with some questions

› How many of you are from a BPO

or similar services co?

• End users? ISVs?

› Do you see BPM as a software

development paradigm?

• Or is it a way of driving ongoing

improvement in business outcomes?

› Who has seen a process?

• What did it look like?

› Do your clients want their

processes foolproof or fault

tolerant?

My objectives for this session

› Challenge your thinking

• Understanding comes from different

perspectives.

› See how the space is changing.

• How much longer for labor arbitrage?

• Where are the future opportunities?

› Develop long term, sustainable

value propositions.

• Reimagine the future (don’t reengineer).

• Drink your own champagne.

• The methods are the same as you will

apply to your customers.


Source: Forrester Research, Inc.60638

1/3 page

1/2 page

2/3 page

Replace text withmeta id number >>

Figure 2 Understanding ProcessesImplies A Spectrum From ProcedureTo Practice

Dynamic case management enablesknowledge worker processes and collaboration

Procedures

Traditional BPM and workflow

Practices

Straight-throughtransactions

Productionworkflow

Collaborativeworkflow

Tryly uniqueexceptions

Ad hocexceptionhandling

Processes exist on a spectrum


Why would they come back?


36%

68%

60%

35%

Value innovation

Customer experience

improvement

Cost reduction

Waste elimination

Maturity level 2-3 (n = 136)

Value innovation

Customer experience

improvement

Cost reduction

Waste elimination

60%

59%

45%

32%


Value innovation

Customer experience

improvement

Cost reduction

Waste elimination

58%

50%

46%

46%


Mature firms take a balanced approach

"What are the two primary goals of your business improvement program?"

42%

39%

74%

43%

Value innovation

Customer experience

improvement

Cost reduction

Waste elimination


Base: 325 business process professionals

Source: Q2 2011 Global Forrester/IQPC Business Process Maturity Online Survey


How many projects/programs/initiatives do you have?

or “Wellness Program”Band-Aid approach

People work hard to improve what they’ve got not what they necessarily need.


Develop vision before the “To-Be” processes

Prioritize

Outline processes

Outcome metrics

Roles and skills

Operational

process

architecture

Executive

engagement

Business

services

(Capability set)

Business

services

(Capability set)

Business

services

(Capability set) Business area

(Capability set)

Business

engagement

Baseline

(As-Is)

Process definitions

(To-Be)

A322+

Process definitions

(To-Be)

A322+A322

+A322+

Let’s switch gears – how do you do projects today?

Establish

customer

experience

vision


Silo’d

Functional

Political challenges abound

Functions supported

by processes

Processes supported

by functions

From Traditional

Line ManagementTo Processes &

Services Management

Challenges revolve around building broad

engagement and creating alignment.


The new rules require transformation.


Transformation – what’s your definition?

“Transformation means being

prepared to change everything

you do; but most importantly –

how you think.”


Brand Definition,

Service and Product

Design, Customer

Segments

CMO Business Process,

Lean, Six Sigma

Continuous

Improvement,

Performance

Improvement

COOCustomer

Experience

Journeys

Touchpoints

CCO

ERP, Workflow,

Business Rules,

Events, SOA, BI,

MDM

CIO

Target

Operating

Model

Strategic

intent

Operating

model

Realizations

and Uses

Integrate across organizational silos


Markets

Brand

Teasing apart strategic intent

HOW ARE WE GOING TO WIN?

Customer

segments

Risk

management

Strategic

intent

Goals &

objectives


Strategic

intent

Articulate the operating modelThe zen operating model

Governance

ServiceProposition

Capabilities

Processes


Ca

pa

bilitie

s

Outside-inInside-out

Lens Efficiency

Risk Reduction Experiences

Value / Outcomes

Integrating outside-in with inside-out

Applications/

Technologies

Processes

Resources/

PartnersS

erv

ice

Pro

po

sitio

n

Cu

sto

me

r O

bje

ctiv

es

Pe

rso

na

Touchpoints

Contexts

Journeys


Example - Commonwealth Bank Australia

Customer goal: buy a

house

New capabilities to help

customer’s achieve goal:

› Mobile: phone camera

and GPS combined with

Internet.

› Content: Integrate 3rd

party content to identify

house, give the list price,

estimate your loans,

provide detailed suburb

profiles, median price,

etc.

› Integration: Plugs into

back end systems to

start loan process;

efficiency built in up

front.



Work backward from customer goals

Customer support; loan

origination; mobile

app; web integration;

credit check, …

Back end integration;

customer onboarding;

loan origination;

partners

CSRs, estate agents,

support …

Inte

gra

ted

mo

bile

ap

p,

we

b s

ite a

nd

CS

R

Take photo of house;

connect to agents;

integrated credit

check, loan origination

Fin

d th

e rig

ht h

ou

se

w

ithin

bu

dg

et

Pe

ter a

nd

Ma

ry –

time

po

or,

ho

us

e h

un

ters

Looking for right

neighborhood and

houses but little

time

Web, mobile,

call center

Cu

sto

mer

Care

Rev

en

ue

Mg

mt

Lo

an

Mg

mt



Co-create and apply at any level

Excel toolkit,

PowerPoint

Capture current

state, options

analysis

Financial analyst;

Lean Six Sigma lead

Sh

ow

Me

Th

e M

on

ey

Un

de

rsta

nd

ca

sh

flow

im

plic

atio

ns

of B

PM

Bu

sin

es

s u

nit m

an

ag

er

with

P&

L re

sp

on

sib

ility

Early stage

business case

development

Briefing, check-ins,

delivery in 10 days

Meetings, reviews

Metric

s d

ev

tB

usin

ess

mo

delin

gE

xecu

tive

IVs


TO

M S

cop

e

Lens


Efficiency

Risk Reduction Experiences

Value/Outcomes

Governance

Design Change Projects

Target operating models provide the glue

Cu

sto

me

r O

bje

ctiv

es

Contexts

Touchpoints

Journeys

Pe

rso

na

s

Applications/Technologies

Processes

Resources/Partners

Cap

ab

ilities

Se

rvic

e

Pro

po

sitio

n

Strategic Intent

Markets BrandCustomer segments

Risk MgmtGoals/

objectives


Operating model informs organization design

› Example Result – Medco 2.0BIAC – Business Innovation and Agility CenterCoE – Center of ExcellenceTRC – Therapeutic Resource Center

TRC / Clinical OpsTRC

Pharmacy Front End & Back end Ops

Order Processing

Client Management OpsClient Advocacy

Fin. Plng and Analysis Ops Revenue Cycle Mgmt Ops

Finance

Patient & Physician Advocacy

Patient & Physician Advocacy

BPM SolutionCoE’s

Business Process Owners’ CoEs

Lines of Business CoEs

Accredo

BIAC

Liberty

BIAC

Market Groups

BIAC

Retiree Solutions

BIAC

New Markets

BIAC

Business Technology Group - Shared Service CoEs

Claims Processing Content Management

Infrastructure Services Info. Planning/Master Data Mgt.

Business IntelligenceArchitecture

Web Services

Imaging Services

Pega Framework


Forrester Capability Portfolio Assessment

Representative numbers only

Sub-dimensions represent

mix of value drivers and

strategic imperatives

Capabilities or Services

grouped by primary value

chain elements Scoring supported by

formal definitions for

each sub-dimension

Dimensions adaptable to

meet program needs


Forrester Capability Portfolio Assessment

1.1

1.2

2.1

2.2

2.3

2.4

2.5

2.6

3.1

3.2

3.3

3.4

3.5

4.1

4.2

4.3

5.1

5.2

5.3

5.5

3.0

5.3

7.5

0 2.5 5

MA

TU

RIT

Y +

PE

RF

OR

MA

NC

E

BUSINESS IMPACT

CAPABILITY PORTFOLIO ANALYSIS MATRIXBubble Size = Complexity

Bubble chart provides

both decision support

tool and long term

tracking of improvements


Target Operating Model update process

1• What purpose does the business (unit) perform. What’s your brand all about.

2

• Assess the current state of your business. Establish a base line.

• How bad is it? What volume/resources, # cases, etc.?

3

• How have your internal capabilities changed? What was the impact?

• What external factors will affect your business going forward.

4

• What’s your vision going forward?

• What service propositions will differentiate you in the eyes of the customer?

5

• What capabilities and enablers do you need to achieve the target?

• Think about it across people, process, technology, data, measurement, etc.

6

• Assess the current results, maturity and level of performance (effectiveness/efficiency) of each key enabler/capability today.

7

• Establish a roadmap to address the gaps.

• Build the engagement plan and manage the change program.


Integrating forces of change

Operating model

Internal ExternalStrategicdirectives

Customerexpectations

Newregulations

Competitoractions

Manager

Team ATeam BTeam C

Balanced and consistent view

App portfolio

Newprogramcharter

PrioritizedBPM

initiative

Customerexperience

Servicedesign

Orgstructure


Give shape to your transformation program

Flesh out top level strategy.

Engage around customers.

Optimize performance.

Consistent process architecture.

Understanding costs and drivers.

Optimizing investment decisions.

Input to organizational design.

Design and coordinate change.


“One cannot teach a man anything. One can only enable him to learn from within himself”

›Apply this framework at any level:

• Business to consumer

• Business-to-business

• Shared services

• Business unit

• Department

• Individual

›Use the overall approach to scale a change program

• Engage them properly and it becomes theirs.

• Big tent, multiple competing teams

• Multiple unrelated concepts, or dependent projects, or just one issue.

›But you need to let people see the world differently

• Means stepping out of the normal frame of reference.

• Start with your own unit.


Example service concepts

CONCEPTS SHOULD BE IDENTIFIED AND DEVELOPED BY TEAM

› The “Project Facilitation” Service

› The “Speed To Market” Service

› The “Show Me The Money” Service

› The “Fast Forward Operating Model” Service

› The “Waste Eliminator” Service

› The “Build A Customer-centric Vision” Service

› The “Value Innovation” Service


Aligning corporate change initiatives

Vision

(Strategy)

Governance

& PlansStructure

Incentives

Perform’ce

Culture

(Behavior)Change

Governance Structure Incentives Culture

Vision Structure Incentives Culture

Vision Governance Incentives Culture

Vision Governance Structure Culture

Vision Governance Structure Incentives

Confusion

False

Starts

Chaos

Gradual

Change

Better

Sameness

Thank you

Derek Miers

+44 20 7323 7670

[email protected]

@bpmfocus